The dollar fluctuated against its main currency rivals yesterday, following the announcement that the Federal Reserve will keep interest rates at their current record lows for the foreseeable future. Investors interpreted the announcement as a sign that the US economic recovery still has a ways to go, and shorted the greenback as a result. The EUR/USD went as high as 1.3720 yesterday staging a slight downward correction. Currently the pair is trading around the 1.3700 level. The USD/JPY fell over 40 pips last night, and is currently trading at 82.15.
Today, a batch of US economic news may put further downward pressure on the dollar. At 13:30 GMT, traders will want to pay attention to the Core Durable Goods Orders and Unemployment Claims figures, while at 15:00, the Pending Home Sales figure is set to be released. All three indicators are known to create heavy volatility, and are all forecasted to show a decline in their respective sectors of the US economy.
Assuming today's news comes in as forecasted; analysts are warning that the EUR/USD could test the 1.3785 resistance level. At the same time, the Unemployment Claims figure in particular has proven notoriously difficult to predict. Should the figure come in below the expected number of 407K, the dollar may see some short term gains in afternoon trading.